Forex Today: All the looks will be on PMI reports

Pablo Piovano FXStreet

The US Dollar regained strong upside traction and maintained the price action in the risk complex depressed amidst interest rate cuts speculation and soft US data releases. In addition, the BoE and the Norges Bank kept their policy rates unchanged vs. a surprising cut by the SNB.

Here is what you need to know on Friday, June 21:

The USD Index (DXY) rose to four-day highs near 105.70 on the back of the rebound in US yields across the curve and the dominating risk-off mood in the FX galaxy. On June 21, the advanced S&P Global Manufacturing and Services PMI will take centre stage seconded by the CB Leading Index and Existing Home Sales.

EUR/USD left behind part of the recent three-session advance and revisited the boundaries of the 1.0700 support amidst strong selling pressure. The EcoFin meeting is due on June 20, followed by the preliminary HCOB Manufacturing and Services PMI in Germany and Euroland.

GBP/USD followed its risky peers and retreated to multi-day lows well south of the 1.2700 support following a firm Dollar and the dovish hold by the BoE. The flash S&P Global advanced Manufacturing and Services PMI come on June 21, along with the GfK Consumer Confidence, Public Sector Net Borrowing, and Retail Sales.

USD/JPY maintained its robust bullish bias and challenged fresh tops near the 159.00 barrier amidst the stronger Greenback and higher yields. The advanced Jibun Bank Manufacturing and Services PMI will be published on June 21 followed by the Inflation Rate.

AUD/USD faced some renewed downside pressure and receded from recent weekly tops, revisiting the 0.6650 zone. In Australia, the flash Judo Bank Manufacturing and Services PMIs are expected on June 21.

WTI prices advanced to fresh highs and approached the $82.00 mark per barrel on the back of renewed geopolitical jitters and a weekly drop in US crude oil inventories.

Gold prices managed to gather fresh steam and advance to two-week highs around $2,365 per ounce troy. Silver rallied more than 3% to surpass the $30.00 mark per ounce and clinch a new two-week high.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.